Europe seen higher after ECB fires bazooka

European markets are seen opening higher on Friday as global markets react to the European Central Bank's (ECB) decision to launch a full-scale bond-buying program.

Global markets are digesting the news that the ECB will launch a bond-buying program in March in an attempt to stimulate the deflation-hit euro zone. Corporate and government bonds will be purchased to the tune of 60 billion euros ($69 billion) a month.

The ECB's program will be open-ended, but will last until at least September 2016, ECB President Mario Draghi said in his regular press conference that follows the the bank's interest rate decision (it kept rates unchanged Thursday).

Sovereign bond purchases will be subject to risk-sharing arrangements, to minimize the risk on the ECB's balance sheet. The announcement by the ECB follows weeks of speculation about the size and scale of a more aggressive stimulus program from the bank.

European equities rallied and the euro fell to around 1.1420 against the U.S. dollar after the announcement, while U.S. stocks extended gains.

There is skepticism that the program will work, however. Michael Hewson, chief markets analyst at CMC Markets, said in a note Friday: "While the program has had the inevitable effect of pushing stock markets sharply higher and the euro off a cliff, it remains doubtful that this extra cash will make that much difference."

"Quite simply, the banking transmission mechanism in the euro area continues to remain impaired, and until that is fixed a lot of this cash is unlikely to trickle down to where it is needed," he added.

In Asia Friday, equity markets posted an upbeat performance on the final trading day of the week following the ECB news.

China's benchmark Shanghai Composite index rose 1.4 percent to a one-week high by midday, supported by a better-than-anticipated HSBC flash China's purchasing managers' index (PMI)

In other news, Saudi Arabia's King Abdullah died early on Friday and his brother Salman has become king. Investors will keep a close eye on the oil exporting nation and what the succession means for crest-fallen commodity.

Meanwhile, Greece is heading for a snap election this Sunday with the anti-bailout Syriza expected to win. It has widened its lead over Prime Minister Antonis Samaras' "New Democracy" party further in the polls, a survey showed Thursday, according to Reuters.

All Greek to me: What could happen in weekend vote

There are concerns that Syriza will renege on the country's international bailout agreement, however. Prime Minister Samaras said Thursday that Greece would be blocked from the ECB debt purchasing program if a review by the country's international creditors isn't concluded, Reuters reported.

Elsewhere, investors will be following the reaction from business leaders at the World Economic Forum in Davos, Switzerland on Friday. Follow our live blog for news and comments.

Live blog: Reaction to Saudi succession, Europe QE

In corporate news, Hutchison Whampoa is set to buy Telefonica's British mobile unit O2 in a deal valued at more than 10 billion pounds ($15 billion), a source with direct knowledge of the matter told Reuters Friday.

Data releases Friday include flash composite PMI data for France, Germany and the euro zone. There are no major earnings Friday.